A stock is expected to pay $1.10 per share every year indefinitely and the equity cost of capital for the company is 8.2%. What price would an investor be expected to pay per share ten years in the future? OA. $13.41 OB. $26.82 OC. $20.12 OD. $33.53

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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A stock is expected to pay $1.10 per share every year indefinitely and the equity cost of capital for the company is 8.2%. What price would an investor be expected to pay per share ten years in
the future?
OA. $13.41
OB. $26.82
OC. $20.12
OD. $33.53
Transcribed Image Text:A stock is expected to pay $1.10 per share every year indefinitely and the equity cost of capital for the company is 8.2%. What price would an investor be expected to pay per share ten years in the future? OA. $13.41 OB. $26.82 OC. $20.12 OD. $33.53
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